Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1887-05-21
SHORT HAUL CLAUSE.
THE APPEAL OF THE SOUTHERN PACIFIC
TO THE COMMISSION.
Arguments Of the Road 10 Show Causs Why the Sec
ton Should Be Permanently Suspended in
is CaSs-lnStancss Quoted OF
RuinOus Competition.

WASHINGTON, May 2O.-At the instance
of the attorney for the Denver and Rio
Grande Railroad Company, the Inter
State Commerce Commission to-day en-
larged the suspensOEy order in the case of
the Union Pacific and Southern Pacific
Railroads so as TO include the Denver and
Rio Grande Company in its operation.
F.. c. Stubbs, General Traffic Manager of
the Southern Pacific Railroad Company,
was the first witness of the day, and was
examined by Mr.. Tweed, counsel for the
railroad, in support of the application to
have the temporary order suspending the
operation of section 4 of the law made
permanent.
Having referred to the traffic over the
Central Pacific Railroad, Chairman Cooley
inquired how it happened that the wit
ness had anything to do with the Central
Pacific
He replied that the Central Pacific was a
leased line operated as far as Ogden by the
Southern Pacific.
Witness said that, beginning in Febru-
ary, 1886, there had been a virulent, bitter
war of rates between the Pacific roads,
lasting up to the date Of passage of the law.
When the law passed the Southern Pacific
had readiusted its rates, diminishing them
in many cases, but increasing them in no
instance. The competition to be met by
the Pacific railroad was of three kinds:
Sailing vessels around Cape Horn, the
Pacific Mail steamers via Panama, and
new factor, the Canada Pacifc-which
connected with San Francisco by means Of
the Pacific coast steamship lines. To
bring all of its traffic down to the level OF
competing rates would simply end in the
bankruptcy of the railroad company-that
was evident.
As an average, a half cent per mile would
probably meet the expense of freight trans
portatiOn between San Francisco and the
Missouri river. 1t paid to carry sugar
eastward at this rate, as it avoided the
necessity of hauling empty cars from the
West to the East This rate was lower
than that made by the Canadian Pacific.
The immediate effect of the application Of
the law had been q cessation OF business by
all routes except by the Canadian Pacific,
the Pacific Mail and clipper ships, but the
real injury inflicted by the act had scarce
ly had time to develop. lfit were enforced
the effect would be to cause the roads to
lose more by the reduction of intermediate
traffic than the gross earnings amounted to
on through traffic.
Among the petitions received by the
Commission to-day was one from the
Chamber of Commerce of Charleston, >.
c., asking the immediate enforcement Of
the fourth section of the law. 1t says:
I'm advocating the petition your memo
rialists would state, in their opinion, that
the main purpose and aim of Congress in
passing this Interstate Commerce bill was
the correction Of the continued discrimi-
nation against the unrestricted and general
exchange of commodities by the great
railroad systems of this country. 1t seems,
therefore, TO your petitioners only fair
and Just that until the effect of this bill
upon the varied interests OF our land Is
proven by its enforcement to be injurious
to any particular class or section, your
! honorable body should delay exercising
| the discretion vested in you of suspendlng
any of its provisions.
1--WE desire also to emphasize the fact
that evidently the spirit of the bill, If
carried, but, will tend to prevent unequal
and oppressive tariffs being laid upon the
! trade OF commerce of one section or terri
/ tory in order to refund to these corpora
| tiuns the loss sustained in the carriage at
| less than actual cost of freights OfaROther
section or territory. Your memOralists
therefore earnestly petition yeu to enforce
all the provisions of this Interstate Com
merce bill, and particularly the fourth
section in order to equalize these unjust
and discriminating rates which seem
planned and carried into effect without any
regard to the general good or the welfare
of all the interests affected by them"